Our Shareholders Realize a Superior Total Return on their Investment and Support our Corporate ValuesAs a Company, Mandalay is committed to delivering strong shareholder value. The Company’s track record of value creation and a 180+% total return from 2009 – end-2015 is one of the best performances in the mining sector.

Returning cash to shareholders is an integral part of our capital strategy and the Company has paid out over $36 million in dividends since 2012. Mandalay’s dividend policy is an annualized 6% of revenue, and dividends are paid out quarterly.

The chart below illustrates how we add value to shareholders on a total return basis. Mandalay is one of the best performing mining companies in its peer group(1).

Fiscal ResponsibilityMandalay achieves its operational and financial goals through disciplined cost control and fiscal responsibility. As the reinvestment of operational cash flow is crucial to the Company’s strategy of funding exploration, expansions, and operational improvements without dilution to shareholders (by raising equity capital for these activities), the Company believes in maximizing and improving over time mine site operating margins, while keeping its General and Administrative (“G&A”) costs low. The Company has a flat, virtual and dispersed structure which has proven itself scalable as the Company continues to grow, thus minimizing corporate G&A overall.

Mining and Processing Improvements
Operational cash flow from the Company’s mines is reinvested into the business to ensure that each operation is able to fund its own growth. The Company believes that reinvestment of operational cash flow is the most cost-effective and shareholder-friendly way to grow each operation, and generate excess cash flow that can add new projects to the portfolio.

See below the Company’s track record in generating cash from operations:

The area in which the Company is most adept at creating value is through the application of the management team’s deep technical, operational, and processing expertise to turn around distressed assets and realize their full production potential to generate greater metal volumes and much larger margins.

Some examples of the ways the Company has applied this expertise to generate value can be found here.

Growing ReservesThe Company also applies its exploration expertise to grow the mine lives of all of its assets. One of the Company’s investment criteria is exploration upside and opportunities where the geological profile of a property can be re-examined, re-interpreted, or properly funded to yield material increases in Mineral Resources and Reserves. The Company is committed to constantly growing its exploration and Reserve pipeline to lengthen the value created and progress made from mining and processing improvements. View our Mineral Resources and Reserves here. The chart below clearly illustrates our growth in Proven and Probable Reserves on a gold equivalent basis (AuEq).

Expanding Production and Lowering Costs
Mandalay’s value creation and growth is a culmination of fiscal discipline combined with mining and operating improvements and the Mineral Reserves position to confidently expand its production profile. These factors allow the Company to continue to expand its margins by producing higher metal volumes at steadily declining costs. View our operating statistics here.